The iPhone XS starts at $999, and the XS Max at $1,099. Both are far more expensive than most smartphones, and buyers wanting above 64 gigabytes of storage can easily hit Mac-like prices. A 512-gigabyte XS Max is $1,449 before expenses like AppleCare, a case, and other accessories.

"We always thought ... that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it," Cook said in addressing the cost of XS models. "For us, it's a large enough group of people that we can make a reasonable business out of it."

The executive also justified prices by arguing for the convenience modern smartphones provide.

"A lot of things you were buying are now so convenient in one [product] and it has taken those things so much further than they could have ever ventured as a stand-alone device," he observed. "The role of the iPhone has become much larger in people's lives."

He dodged the issue of new tariffs the Trump administration has threatened to impose on China -- which could impact the prices of the Apple Watch, AirPods, and other Apple products -- merely saying he's "an optimist."

Much of the company's supply and assembly chain is based in China, and even if it were to relocate production to the U.S. as Trump has asked for, prices would still have to rise to accommodate higher wage and labor standards, among other expenses.

Comments

I think much of the world might disagree with his understanding of 'everyone', but the iPhone Xr is a good phone at a comparatively good price. I plan to pick up a blue one, mostly because I like the color and it has everything I care about.

Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.We work four months to pay taxes, and more than 5 for a new iPhone.........

I think the people of Brazil needs to have conversation with its government, the $1342 you will pay for and XR is because you government is taking a big chunk of that price. There is not much Apple can do about they unless they make the entire product in Brazil and they creates a whole host of issue like the plant has to be owned by someone who is Brazilian national, even it phone was built there it still would cost about the same.

Face it most people will buy what they want to afford, Apple or any company is not forcing people to pay more than they want to pay. The problem we have is so many people today think everything has equal value and all phone should just cost the same no mater what.

Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.We work four months to pay taxes, and more than 5 for a new iPhone.........

Apple will sell to any customers who are able to pay what they are asking and there is no shortage of customers who are not price sensitive. Apple should never compete only on price. Down that road lies ruin.

I think much of the world might disagree with his understanding of 'everyone', but the iPhone Xr is a good phone at a comparatively good price. I plan to pick up a blue one, mostly because I like the color and it has everything I care about.

"Everyone' includes those spending $449 for an iPhone 7. For most, that is affordable -- more a matter priorities than affordability.

Oh, they raise the price and they take back the headphone adapter. Sure. You’ll see, next iteration the charger will be removed, and the one after that, you’ll have to pay $2,000 for a phone and cough up some extra for the battery.